The slack U.S. supply and strong exports have pushed up prices.
USDA reports an increase in cattle on feed to help address rising export demand and higher prices.
According to the report, consumers are likely to face tight supplies and high prices for red meat at the supermarket next year. Beef production is forecast to drop 5% next year, a reflection of a reduction in U.S. cattle herds to their lowest levels since the late 1950s.
Feeder cattle rose 4% to 12.1 million on Dec. 1 from a year earlier. In Iowa, feedlot placement were down 3% to 570,000 animals. Iowa is the nation’s fifth-largest cattle feeding state, trailing Texas, Nebraska, Kansas and Colorado.